MEDIA & NEWS | 18 JANUARY 2019

Absa’s latest acquisition supports an overall growth strategy in Africa

Absa-CIB-Author

Absa CIB Admin

SHARE
Facebook
Twitter

Absa reaches agreement to acquire Société Generale’s custody, trustee and derivatives clearing services in South Africa.

Société Generale has reached an agreement to sell its custody, trustee and derivatives clearing services operated in Johannesburg to Absa Group Limited.

Absa agreed to acquire the related activities conducted by Société Generale in South Africa, notably its client portfolio, IT systems and all the employees dedicated to these activities.

The transaction is subject to the approvals of the relevant authorities, which are anticipated to be obtained by end of 2019.

The securities lending and borrowing services are not part of the transaction and will be terminated by end of March 2019. Furthermore, Société Generale and Absa intend to cooperate on the provision of securities services as part of the enrichment of the pan-African and global offering.

“For Absa, the acquisition supports our growth strategy in Africa,” said Maria Ramos. “The transaction allows Absa to re-establish a firm foothold in the custody and trustee services market and provides us with the opportunity to expand our offer to corporate clients in South Africa.

“Our strategic intent is, in time, to provide these services across markets where we have a presence.”

The sale is in line with Société Generale’s strategic plan whose primary objectives are to focus on markets where it can generate potential synergies with other Group businesses.

Société Generale group remains engaged in South Africa with its activities in corporate and investment banking managed via its representative office in Johannesburg and through the combined pan-African offering launched in partnership with Absa.

This article was originally published here

Absa-CIB-Author
Absa CIB Admin

Related Articles

Commercial Property Insights

East African property is on the rise

Despite the challenging economic environment experienced over the last three years, the East African property market is one that appears to be offering some exciting potential for patient investors. While Emerging Market property faces certain headwinds including inflationary pressures, rising global interest rates and liquidity squeezes, there are reasons to feel optimistic about the sector as a whole.

Commercial Property Insights

2021 MSCI South Africa Annual Property Index returns show the sector recovered to a positive return of 5.3%

The IMF’s January 2022 World Economic Outlook forecasts global growth to moderate from an estimated 5.9% in 2021 to 4.4% and 3.8% in 2022 and 2023, respectively. This outlook was produced early in the first quarter and had not accounted for the outbreak of the conflict between Russian and Ukraine. The IMF further forecasts South Africa’s economic growth to decrease from 4.9% to 1.9% from 2021 to 2022 and to further decline to 1.4% in 2023. However, Absa Economic Research Unit forecasts moderately higher expectations with growth of 2.1% in 2022 and 1.7% in 2023.

TRADE INSIGHTS

AfCFTA, the long road to Africa’s promised land of trade and prosperity

The African Continental Free Trade Area (AfCFTA) has been touted as the supercharger of Africa's long-term economic success. Here, Bohani Hlungwane, Group Head of Sales, Trade and Working Capital at Absa, looks at how far we have come and what needs to be done. vvvvvvvv

MINING INSIGHTS

Absa Insights Series: Resource firms and funders are increasingly transparent about carbon emissions

The Paris Agreement forces companies and lenders to be responsible and to consider the climate in their operations.